3. Jack & Jill, a married couple filing jointly, have a projected 2021 taxable income of $400,000. Their neighbor Bob & Betty, also a married couple filing jointly, have a projected 2021 taxable income of $ 70,000. James, a friend to both couples works for a brokerage company specializing in bonds. He asks both couples to consider investing $ 100,000 in either of the following bonds: A municipal bond that pays tax free interest income. 10 year bond paying 6% interest per year, or An AT&T bond that pays taxable interest income. 10 year bond paying 8% interest per year. Assume each bond has identical risk and other features. A. Which bond would you recommend to Jack & Jill? Why? B. Which bond would you recommend to Bob & Betty? Why. Schedule Y-1-Married Filing Jointly or Qualifying Widow(er) If taxable income is But not over: over: The tax is: $ 0 $ 19,900 10% of taxable income $ 19,900 $ 81,050 $1,990 plus 12% of the excess over $19,900 $9,328 plus 22% of the excess over $81,050 $ 81,050 $172,750 $172.750 $329,850 $29,502 plus 24% of the excess over $172.750 $329,850 $418,850 $67,206 plus 32% of the excess over $329,850 $95,686 plus 35% of the excess over $418,850 $418,850 $628,300 $628,300 $168,993.50 plus 37% of the excess over $628,300